Arctic Oil & Gas - "Alaska 1, Norway 0"

MarineLink.com
Monday, August 05, 2013

 E&P costs have been increasing by 11% per annum for the last five years, according to Barclays Capital, and nowhere are they increasing faster than in remote and harsh offshore environments like Alaska’s OCS or Norway’s north Barents Sea.

The governments of Alaska and Norway have taken diametrically opposite courses. Alaska decreased its marginal tax on oil production from 85% to 35%, and BP promptly moved to add two new rigs to its Prudhoe Bay operations. By contrast, the Norwegian government has raised taxes on its oil industry, prompting Statoil to defer the Johan Castberg north Barents Sea project.

Although the Brent oil price has shown signs of life in recent days, we believe that exploration and production costs will continue to outpace oil price gains, just as they have for the last two years. Therefore, industry economics will remain under pressure. And if the costs of oil extraction are increasing, then governments sooner or later will have to appreciate that the value of reserves in the ground is falling. Far from being able to grow government take (including taxes, royalties and production sharing), the oil companies will increasingly be requiring direct or indirect tax cuts if production--and oil field services employment--is to be maintained.

Back in the Arctic, the State of Alaska seems to be catching on; Norway, less so. For now, Alaska 1, Norway 0.
 

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

Cavotec, ABB Partner on Shore-to-ship Power

Cavotec and ABB have signed a Memorandum of Understanding to jointly offer complete shore-to-ship power solutions globally. Such solutions allow vessels to plug

EU Adopts New Arctic Policy

The High Representative for Foreign Affairs and Security Policy and the European Commission have adopted a policy proposal that will guide the actions of the European Union in the Arctic region.

Langh Tech Scrubbers for Norwegian Cruise Line Newbuilds

Finnish manufacturer and supplier of scrubber solutions Langh Tech will deliver scrubber systems to two new cruise vessels on order at Meyer Werft in Papenburg for (NCL).

Energy

Subsea 7 Profits Dip in Q1

Subsea 7 S.A. announced its financial results for the first quarter ending March 31, 2016, reporting revenues of $746 million, down 37 percent from the prior year period.

India Instructs Disputed Tanker to Await UN Orders

India has instructed an Indian-flagged oil tanker that has been blacklisted by the U.N. not to discharge its cargo of crude oil from Libya's rival eastern government

Norway: Oil Industry Safety Deteriorated in 2015

The risk of accidents in Norway's oil industry rose last year after reaching record lows in 2014, a survey by the Nordic country's safety watchdog showed on Thursday.

News

Matson Announces Q2 Dividend of $0.18/Share

The Board of Directors of Matson, Inc. today declared a second quarter dividend of $0.18 per common share. The dividend will be paid on June 2, 2016 to all shareholders

Disabled Fishing Vessel Towed to Maine

The 60-foot fishing boat Paulo Marc was towed by the crew of U.S. Coast Guard Cutter Moray after the fishing vessel became disabled Wednesday about 90 miles east of Portland, Maine.

Blacklisted Oil Tanker Returning to Libya

An Indian-flagged oil tanker is returning to Libya, the North African country's rival oil corporation said on Thursday, after its failed first attempt to export

Government Update

Blacklisted Oil Tanker Returning to Libya

An Indian-flagged oil tanker is returning to Libya, the North African country's rival oil corporation said on Thursday, after its failed first attempt to export

US Urges ASEAN Unity on South China Sea Ruling

China risks "terrible" damage to its reputation if it ignores an impending international court ruling on the South China Sea, the United States said on Thursday,

French Wheat Exports Await Indonesia Approval

French wheat exports to Indonesia are on hold as traders await the approval of a food safety agreement between the two countries, something exporters say is being

Arctic Operations

EU Adopts New Arctic Policy

The High Representative for Foreign Affairs and Security Policy and the European Commission have adopted a policy proposal that will guide the actions of the European Union in the Arctic region.

Ice Navigation System Selected for Magne Viking

Rutter Inc. announced that Viking Ice Consultancy selected the sigma S6 Ice Navigator system for installation on the Magne Viking, the first vessel to comply with

ExxonMobil Starts Production at Point Thomson

ExxonMobil said today it has started production at its Point Thomson project, the first company-operated project on Alaska’s North Slope. Central pad facilities

Offshore Energy

Subsea 7 Profits Dip in Q1

Subsea 7 S.A. announced its financial results for the first quarter ending March 31, 2016, reporting revenues of $746 million, down 37 percent from the prior year period.

Ulstein Verft's First Wind Service Vessel Launched

Shipbuilder Ulstein Verft has launched its first vessel within the renewable energy segment, and also the first with the newly-developed X-STERN hull line design.

Challenges for Offshore Exploration

The oil discoveries are down 47% y-o-y on an annualised basis so far in 2016, global rig utilisation has dropped 22 percentage points to 73% in two years, and 29% of seismic units are inactive,

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1132 sec (9 req/sec)